The One Basic Money Mistake That’s Keeping You From Achieving Your Goals

There is a stigma in society to “keep up with the Joneses” and obtain a high-end lifestyle. It’s only been perpetuated by the prevalence of social media and its capabilities to post, therefore see, anything, from your friend’s new car to a vacation some of your friends are enjoying.

Over the years, I have heard such statements as:

“My friend makes a lot of money, so it’s not a problem for her,” or “He/she is a doctor/lawyer/entrepreneur, so they must have a lot of money.”

In a recent workshop I hosted in February this year, one of the guests said,

“Well, my friend is a lawyer. And he’s rich.” I asked her, “How do you know he’s rich?” She replied, “He just is because he’s a lawyer.”

The biggest money mistake that is holding you back is your perception of money and comparing your standard of wealth to others. Unless you’ve seen someone’s net worth statement and compared yours to theirs side by side, then you don’t know how you truly stack up financially. You can’t assume someone is doing better or worse than you just by looking at their exterior possessions or that they are rich simply because of a career title.

In sports, such as baseball, football, or boxing, have you ever noticed that each player has his or her own scorecard? The best are the best because they laser focus on beating their own score while the others are too busy looking around. Every now and again, they would peek up to see how someone else is doing, but they ultimately strive to beat their own numbers.

While you cannot view everyone’s money scorecard so you can easily compare, you can still focus on improving your own financial situation.

Next time you feel the need to compare yourself to others, just remember this to keep things in perspective:

1. Just because someone makes a million dollars a year doesn’t mean they are rich. It simply means they make a million dollars a year. You don’t know how much of it they’re actually keeping.

2. Rich and poor are relative terms. What you deem as poor is someone else’s version of rich.

Focus on increasing your net worth and use it as a measuring tool to meet your life’s financial benchmarks. If you have the confidence in knowing you’re meeting all of your financial goals, it shouldn’t matter what someone else is doing. That is true financial success!

The mission of Capital Benchmark Partners is simple: Simplify Money. Simplify Life. Create a CBP Lifestyle by taking advantage of our array of financial planning services tailored to the juncture in your life. It is never too early or too late to set yourself up for financial success.

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